Managerial Economics
Course type
Study programme and level
Language
slovenščina
Lectures | Seminar | Tutorial | Druge oblike študija | Individual Work | ECTS |
---|---|---|---|---|---|
35 | 30 | 85 | 6 |
Study program and level | Study field | Academic year | Semester |
I. level | Law and Management of Infrastructure and Real Estate | 1 | 2 |
Course type
Compulsory
Workload | Lectures (h/semester) | Seminar
(h/semester) |
Tutorial
(h/semester) |
Individual Work (h/semester) | ECTS |
35 | 30 | 85 | 6 |
Lecturer
assist. prof. dr. Boštjan Aver
Languages
English
Prerequisites
There are no specific conditions. It is desirable prior knowledge of microeconomics, accounting and finance.
Content (Syllabus outline)
1. Introduction to managerial economics: the definition of managerial economics, the use of models in managerial economics, present value analysis, analysis of the expected value of uncertain events, criteria for decision making in market conditions, business decisions – the problem of principal and agent, etc.
2. Deciding in the environment of risk and uncertainty: decision tree and the expected present value, compliance risk in decision-making, decision-making criteria (maximini, coefficient of variation, EPV – ODR criterion, a certainty equivalent…), attitudes towards risk, the cost of information gathering, assessment of decisions, etc.
3. Cost concepts for business decision: economic and accounting costs, cost curves, analysis of incremental costs and revenues, using contribution analysis in business decisions (economies of scale and joint production), etc.
4. Assessment of demand function: the definition of demand function, controlled and uncontrolled variables in demand functions, indirect methods of assessing demand, direct methods of assessing demand (interview, survey, simulation of market conditions, experiments), regression analysis of demand (a function of demand in the regression analysis, estimate the elasticity of demand, evaluation of equations), etc.
5. Models of market structure and corporate balance: types of market structures, perfect competition, monopoly and price discrimination, short-and long-term equilibrium in monopoly, monopolistic competition, oligopolistic models (broken curve in demand function, price leadership, cartel, preventing entry into the industry), etc.
6. Pricing in practice: »marginalistic« methods in practice, plus pricing, market positioning, pricing group of products, inference about the quality on the basis of product/service price, the pricing of basket products, promotional prices, etc.
Study Literature
– Mansfield, E. (2005). Managerial Economics, W.W. Norton.
– Thomas, C. R, Maurice, S. C. (2005). Managerial Economics, McGraw Hill Irwin.
– Walsh Ciaran: Key Management Ratios. Pitman Publishing, London, 1969.
– Gomez P.: Integrated Value Management, International Thomson Business Press, London, 1999.
Objectives and competences
Students will develop basic competences:
• knowledge and application of microeconomic theory and economic tools in making business decisions, such as.: setting external links businesses, deciding between alternative investments in conditions of uncertainty, forecasting sales of the company, determine the optimal size of plants and pricing of products that maximize the profits of the enterprise,
• knowledge of specific decisions in companies (mix of internal and external factors, which influence decisons),
• ability to understand and use models of market structures for the investigation of various forms of market structures,
• the ability of analytical and structured approach to solving problems faced by companies in practice,
• communication skills by integrating economic tools, presentations, analysis and reasoning solutions, ideas, projects, problems,
• ability to understand the economic theories.
Students will develop subject – specific competences:
• using analysis of net present value and analysis of expected value of uncertain events,
• using of the decision tree and the expected present value,
• knowing decision criteria in conditions of uncertainty,
• understanding the use of models in managerial economics,
• understanding the different types of business costs and cost curves,
• using demand function and knowing its variables and using regression analysis of demand,
• understanding direct and indirect methods of assessing demand for products / services,
• using of various models of market structures, such as a perfect competition, monopoly, monopolistic competition, oligopoly,
• understanding of different methods of pricing products / services in practice.
Intended learning outcomes
Student will:
• consolidate and upgrade the secondary and undergraduate basic knowledge of accounting, finance and microeconomics,
• upgrade the knowledge of the demand function, cost and revenue models and market structures,
• become familiar with the criteria in the decision-making situations uncertainty and knowledge about the pricing of products in practice,
• be able to further analyze the function of demand, determine its properties, to display a graph,
• be able to further analyze the function of the cost, determine its properties, display a graph,
• understand different models of market structures and determine a balance,
• understand the method of pricing products and services in practice,
• understand the use of models in managerial economics,
• be able to solve complex real tasks in the areas of business decision-making,
• be able to calculate the net present value and to calculate expected value of uncertain events,
• be able to calculate the parameters of demand function,
• be able to draw the curves of different types of business costs and to seek optimal quantity of products,
• understand the most important criteria for decision-making under conditions of uncertainty, such as: maximini, coefficient of variation, certainty equivalent,
• understand the most important direct and indirect methods of assessing demand for the products of the company,
• be able to calculate the regression function in conjunction with the function of demand,
• be able to calculate the elasticity of demand for certain products / services,
• understand the models and know how to draw a “situation” of perfect competition, monopoly, monopolistic competition, oligopoly, cartels, etc.
Learning and teaching methods
Work form:
• frontal teaching,
• individual work of students,
• e-learning.
Methods:
• explanation,
• discussion,
• case study,
• solving problems.
Assessment
Final test at the end of the course.
Lecturer’s references
Doc. dr. Bostjan Aver obtained a Ph.D in Economics at the Faculty of Economics in Ljubljana, receiving the title of Doctor of Science in the field of Management and Organisation in April 2004. He is currently Assistant Professor of Business Economics (from 24.11.2014 to 11.23.2019) and was Assistant Professor of Finance and Accounting (from 7.7.2009 to 07.06.2014). From 15th February 2014 he has been the Director of the public company Komunalno podjetje Logatec and before that, from 13th July 2013 until 15th February 2014, he was CEO of the aforementioned company. From September 2007 to October 2009 Aver was CEO of the Mutual Health Insurance company Vzajemna Zdravstvena Zavarovalnica and before that for several years, from 2004 to 2007, Head of Finance, Accounting and Controlling. From 2000 to the beginning of 2004 he was employed at Banka Koper d.d, lastly as Head of Planning and Monitoring and before that Head of Controlling. From December 2008 to January 2011 he was Chairman of the Supervisory Board of capital pension and disability insurance company KAD (Kapitalska Družba Pokojninskega in Invalidskega Zavarovanja d.d.). From December 2009 to October 2012 he was also Member of the Supervisory Board and the Audit Committee of Juteks d.d. Dr. Aver is the author of numerous scientific and technical articles, mainly in the field of finance, accounting, controlling and project management. He presented his contributions during conferences held on national and international level and was also a member of the Editorial Board of the Slovenian banking journal Bančni Vestnik. He was actively involved with the Slovenian Association for Project Management. He was a lecturer in “Business Finance” at the Faculty of Management in Koper, from September 2007 onwards. He teaches “Real Estate Marketing” at the European Faculty of Law in Nova Gorica (and head professor teaching three subjects for the PMIN Programme). For several years he has been cooperating with the Faculty of Economics of the University of Ljubljana as a visiting professor, where he teaches “Health Insurance”. He is also a visiting professor at the “European School of Law and Governance”, European University in Kosovo. Currently dr. Aver is focusing on “Effectiveness, efficiency and solvency of the company” and “Managerial Economics” at Gea College – Faculty of Entrepreneurship and before that he taught “Introduction to Personal Finance” and “Life and Health Insurance” for the University programme “Financial Adviser”. Professor Aver also received several awards and certificates, including the Certificate of the Slovenian Directors’ Association, the Certificate of State Supervisors and many other certificates in the field of Project Management, etc. Professor Aver has given his contribution to important projects such as: a) the Targeted Research Programme Project (CRP projekt) “Ensuring ourselves food for tomorrow” – “The Development of a Comprehensive System for Production and Income Risks Management in Slovenian Agriculture and Fishing Industry”; b) the project “Accessibility improved at Border CROSSINGS for the Integration of South East Europe« (Project leader: Central European Initiative – Executive Secretariat), etc. From 2012 to 31.12.2015 dr. Boštjan Aver is working on the financial control of the Trbovlje-Hrastnik mine closure (invitation to tender for technical and financial control of the Trbovlje-Hrastnik mine closure for the period 2012-2015), i.e. for the contracting authority the Ministry of Infrastructure of the Republic of Slovenia. He has also had other experiences in the field of financial supervision and financial advisory services (e.g. financial advising to the Izola General Hospital in preparing the “Report on Financial Restructuring Measures at Izola GH according to the Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act (ZFPPIPP)” and other financial and accounting consulting to Izola GH in the years 2010-2013; financial and other consultancy to some companies in Slovenia, etc. ).